Johnson & Johnson (JNJ) vs Merck & Co., Inc. (MRK)
MRK leads on 12 of 17 compared metrics, though JNJ is the cheaper stock.
A side-by-side comparison of Johnson & Johnson and Merck & Co., Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
Total return — JNJ vs MRK
growth of $100 · last 30yJNJ +885.6%MRK +287.9%JNJ compounded faster
JNJ MRK
JNJ vs MRK: by the numbers
- •JNJ is the larger company ($579.83B vs $294.03B market cap).
- •JNJ trades at the lower earnings multiple (27.85 vs 33.54 P/E).
- •JNJ converts more revenue to profit (21.83% vs 13.62% net margin).
- •MRK grew revenue faster over the past five years (8.60% vs 2.99% CAGR).
- •MRK pays the higher dividend yield (2.79% vs 2.18%).
Which is better, JNJ or MRK?
Metric tally: JNJ 5 · MRK 12It depends on what you're optimizing for:
ValueJNJ(lower P/E)
GrowthMRK(faster 5Y revenue CAGR)
IncomeMRK(higher dividend yield)
QualityMRK(higher ROIC)
Valuation
| Metric | JNJ | MRK |
|---|---|---|
| P/E ratio | 27.85● | 33.54 |
| Forward P/E | 18.87 | 12.35● |
| P/S ratio | 6.11 | 4.49● |
| P/B ratio | 7.25 | 6.41● |
| PEG ratio | 0.21● | 1.81 |
| EV / EBITDA | 18.71● | 19.58 |
| FCF yield | 3.02% | 4.80%● |
Profitability
| Metric | JNJ | MRK |
|---|---|---|
| Gross margin | 69.12% | 75.91%● |
| Operating margin | 26.87% | 27.59%● |
| Net margin | 21.83%● | 13.62% |
| ROE | 25.92%● | 19.48% |
| ROIC | 13.71% | 18.27%● |
Dividends
| Metric | JNJ | MRK |
|---|---|---|
| Dividend yield | 2.18% | 2.79%● |
| Payout ratio | 47.51% | 45.48% |
Growth (annualized)
| Metric | JNJ | MRK |
|---|---|---|
| Revenue CAGR (5Y) | 2.99% | 8.60%● |
| EPS CAGR (5Y) | 11.51% | 21.21%● |
| FCF CAGR (5Y) | -2.38% | 15.69%● |
| Total return CAGR (5Y) | 10.93% | 12.79%● |
Frequently asked
- Which is better, JNJ or MRK?
- It depends on your goal. value: JNJ (lower P/E); growth: MRK (faster 5Y revenue CAGR); income: MRK (higher dividend yield); quality: MRK (higher ROIC). Across all compared metrics, MRK leads 12 to 5.
- Is JNJ or MRK cheaper?
- On trailing earnings, JNJ is cheaper: JNJ trades at a 27.85 P/E and MRK at 33.54.
- Which has grown faster, JNJ or MRK?
- Over the past five years, MRK grew revenue faster — JNJ at a 2.99% CAGR versus MRK at 8.60%.
- Does JNJ or MRK pay a bigger dividend?
- JNJ yields 2.18% and MRK yields 2.79% based on trailing dividends and the latest price.
- Is JNJ or MRK more profitable?
- JNJ runs the higher net margin — JNJ at 21.83% versus MRK at 13.62%.
- Which has been the better investment, JNJ or MRK?
- Over the past 10-year, MRK delivered the higher annualized total return — JNJ at 10.46% versus MRK at 11.57%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Johnson & Johnson P/E ratioMerck & P/E ratioJohnson & Johnson dividend yieldMerck & dividend yieldJohnson & Johnson ROEMerck & ROEJohnson & Johnson operating marginMerck & operating marginJohnson & Johnson revenue growthMerck & revenue growthJohnson & Johnson free cash flowMerck & free cash flow
Johnson & Johnson & Merck & appear in these rankings
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Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 13, 2026.